Paper-Based Systems

Traditional Bound Accounting Books

These are the books that can be purchased at any stationery or office supply store. They are inexpensive and generally easy to keep—provided that the initial journals and accounts have been set up properly in the first place. It is VERY useful to engage an accountant or bookkeeper to set the accounts up for you. Consider spending some time with the accountant or bookkeeper to understand how this system works and how to make proper postings, especially if you are not going to engage a bookkeeper. Users must be diligent in making the entries.

Initial cost: Inexpensive.

Benefits: Inexpensive and can be easy to use if familiar with its operation, suitable for low-volume practices.

Drawbacks:

Requires knowledge of accounting.
Very rarely used these days.
Difficult to reconcile (as compared to a computerized system).
No benefit of ancillary systems (such as conflict checking, limitation systems, accounts receivable reminders, etc. that arise in a computerized system).
No automatic production of management reports (cash flow statements, billings by lawyer per period, disbursements on a file, etc.).
No linkage to other office systems.

"One-Write" Systems

These accounting systems simplify the accounting process by providing a means whereby all entries are prepared simultaneously (by carbon or NCR paper). These systems ease the need to make double entries by causing the entries to be made at the same time—hence the "one-write" system.

Initial cost: Approximately $500

Benefits: Reduces mistakes, easy to use.

Drawbacks:

Requires some knowledge of accounting.
Difficult to reconcile.
No benefit of ancillary systems (such as conflict checking, limitation systems, accounts receivable reminders, etc. that arise in a computerized system).
No automatic production of management reports (cash flow statements, billings by lawyer per period, disbursements on a file, etc.).
No linkage to other office systems.
Rarely used these days.